Media reports said that China Customs found that many batches of Model3 logos were irregular; Barclays lowered Teslas target price by 9%, nearly 30% lower than the current price. Teslas share price fell more than 5% in the session, and later said that in close cooperation with customs to restore customs clearance, the share price fell by less than 0.5% at one time, and finally closed down 3% for two consecutive days.

Wall Street institutions are not optimistic about Teslas price reduction and online sales transformation. China has also heard about the problem of clearance of Model 3. Teslas share price closed at a four-month low for two consecutive days.

Before Tuesday, 5 U.S. Eastern Time, the Beijing News reported that Shanghai Customs found 4 batches of 1 600 Tesla Model 3 irregularities in the inspection and supervision of imported automobiles. The Chinese Customs said that the Customs at Chinas automobile import ports had suspended the release and would inform enterprises not to sell or use the released vehicles.

Also before the session, Barclays analysts Brian Johnson and Steven Hempel announced that the target price of Tesla stock dropped 9% from $210 to $192, making it Wall Streets lowest expected price, about 43% lower than the median price of Tesla target of $339.21 calculated by FactSet.

Earlier Reuters reported that Tesla said that the Chinese Customs accepted Teslas plan to solve the vehicle clearance problem. At noon, a Tesla spokesman said that he had reached a solution with the Chinese Customs and was working closely with the Customs in order to restore the clearance process of Model 3. The problem is that some Model3 logos are misprinted.

On Monday, Bloomberg reported that Teslas move to close stores surprised some employees, many of whom didnt know about the plan until the company announced its decision on Thursday. It is worth mentioning that the closure of the stores is also a factor that Barclays analysts believe makes investors more worried.

On Tuesday, Tesla lowered to $270.1 in early trading, the lowest level since October 23 last year, with a daily decline of more than 5.3%. After Reuters news, Teslas decline narrowed to less than 3%. After Tesla spokesmans statement, the decline further narrowed, rising to $284 at one time, less than 0.5% in the day, and then expanded again, finally closing down 3.09%.

Even at Tuesdays lows, Teslas share price is about 29% higher than Barclaystarget price. Tesla shares have fallen for the third consecutive day. After closing down about 3.2% on Monday, Tuesdays second consecutive days earnings hit a new low since October 22, falling more than 13% since Thursday.

Towards the closing date, media Mercury News said Tesla reported to California authorities on January 1 that it had increased 81 layoffs at Freemonts manufacturing plant and a cumulative number of layoffs this month to 883. The number of layoffs at Lathrop increased by four to 141. Wall Street also found that Tesla announced plans in late January to cut 1017 jobs in three California districts starting in March, and that Fremont and Lathrop are now slightly more than expected.

After the news came out, Teslas share price leveled off about 0.2% after-market gains and fell 0.1% after-market as of the latest update.

On Monday, when Teslas share price hit a record low, the Daily Economic News had heard that Model 3 had been suspended by the Customs. It reported that a document suspected of having flowed out of Customs showed that:

The Customs at all automobile import ports shall suspend the release of imported Tesla Model 3 pure electric vehicles and issue the corresponding On-Board Inspection List, notify the importing enterprises that the relevant vehicles have been released before the issuance of the notification, and shall notify the importing enterprises not to sell and use them, and withdraw the On-Board Inspection List which has been issued. At the same time, the Customs at the import ports of automobiles should strengthen the inspection of other imported models manufactured by Tesla Company of the United States.

However, the Daily Economic News said that the above documents were not confirmed by Tesla, and Tianjin Customs responded that it had not received the notification.

Last Thursday Tesla announced the long-awaited $35,000 Model 3, and announced that it would close stores worldwide in large quantities while laying off staff, thereby shifting to a purely online sales model. Tesla CEO Musk said at the time that it was unlikely to make a profit in the first quarter of this year and that it would be in the second quarter. Tesla shares fell more than 8% the next day.

Last Friday, Tesla also slashed the prices of eight models, including Model 3, by 26-44,000 yuan, Model S by 113-2775,000 yuan and Model X by 1745-3411,000 yuan.

Such a sharp price cut has excited some car owners who have just lifted their cars. First financial report said that some car owners in Shanghai, Beijing, Shenzhen and other places believed that Teslas sharp price fluctuations in the short term had damaged the interests of the old car owners, which was unacceptable. Some owners claim that if no compensation agreement can be reached, they will not exclude the protection of consumersrights and interests through legal means.

On Tuesday, Teslas official website updated the Model 3 price to cancel the complimentary driving gift. For customers who did not mention their cars before February 28, Tesla offered two solutions: First, the order maintained the original price and upgraded the original donated enhanced version of EAP to Autopiolot Auto Auxiliary Driving+Full Auto Driving Capability (AP+FSD) for free; and second, the order upgraded to Autopiolot Auto Auxiliary Driving+Full Auto Driving Capability (AP+FSD); Orders enjoy new official price, automatic assistant driving (AP) or full automatic driving capacity (FSD), which need to be matched according to the official price.

And a report released Tuesday by Barclays analysts said that Teslas recent price cuts and the closure of most of its physical stores had affected Teslas bullish outlook. They argued that Tesla could not offset the decline in profit margins by increasing sales and saving costs.

Many are expecting Tesla to become the next Amazon to sell luxury cars at below-rival prices and gain competitive advantage by selling them online rather than in physical stores. But Barclays analysts say,

Model, which announced a $35,000 sale price earlier than expected, did not reflect the companys significant progress in manufacturing and distribution costs. It may reflect the need to replenish cash after redemption of convertible bonds. The weak U.S. sales in the first two months of this year may have exacerbated Teslas cash problem.

Barclays referred to convertible bonds as $920 million of convertible bonds maturing on March 1, the first of Teslas maturities this year. Earlier, CNBC sources said Tesla had paid off in cash.

Last Sunday, Musk announced that a new model, ModelY, will be released in Los Angeles on the 14th of this month. The volume is 10% larger than Model 3, and the price will be about 10% higher accordingly. Axios later said that attention to ModelY would certainly help distract the market from Teslas financial distress. Joseph Spak, an analyst at Royal Bank of Canada, commented that Teslas big price cut on existing models and the closure of a large number of sales outlets showed that Tesla was eager to boost consumer demand for its products. Demand for these products in the United States, Europe and China is likely to wane. * This article is from Wall Street (Wechat ID: Wallstreetcn). Source: Editor-in-Charge of Wall Street: Wang Fengzhi_NT2541

Last Sunday, Musk announced that a new model, ModelY, will be released in Los Angeles on the 14th of this month. The volume is 10% larger than Model 3, and the price will be about 10% higher accordingly.

Axios later said that attention to ModelY would certainly help distract the market from Teslas financial distress.

Joseph Spak, an analyst at Royal Bank of Canada, commented that Teslas big price cut on existing models and the closure of a large number of sales outlets showed that Tesla was eager to boost consumer demand for its products. Demand for these products in the United States, Europe and China is likely to wane.